4 ms·
'Resident but not domiciled' is a very old system in the UK based on things like which country you have purchased a burial plot in. It's kept around because its
by jsmith99 7y ago
'Resident but not domiciled' is a very old system in the UK based on things like which country you have purchased a burial plot in. It's kept around because its a handy way to persuade oligarchs to live in the UK: they only get taxed on non UK income if they bring it into the UK, otherwise its tax free.
It was reformed several years ago to make it very hard for actual UK people to use. It is very difficult to give up UK domicile, and even if you manage to (by proving you no longer have any links) then HMRC will deem you UK domiciled anyway if you ever become UK tax resident. People who've been resident in UK for too many years are also deemed UK domiciled now.
- peteretep 7y ago> then HMRC will deem you UK domiciled anyway if you ever become UK tax resident This appears to be not true in practice, reading the list of notable people with non-dom status.
- jsmith99 7y agoThe rules only changed in the 17/18 tax year. Also most prominent non doms have never previously been UK domiciled (eg the Goldsmith family have inherits non dom status for generations) or currently live and are tax resident abroad.